Pure Storage: Fiscal 3Q25 Financial Results

Pure Storage, Inc. announced financial results for its 3rd quarter fiscal year 2025 ended November 3, 2024.

“Pure Storage has achieved another industry first in our journey of data storage innovation with a transformational design win for our DirectFlash technology in a top-four hyperscaler,” said Charles Giancarlo, chairman and CEO, Pure Storage. “This win is the vanguard for Pure Flash technology to become the standard for all hyperscaler online storage, providing unparalleled performance and scalability while also reducing operating costs and power consumption.”

3^rd quarter financial highlight:

• Revenue $831.1 million, an increase of 9% year-over-year
• Subscription services revenue $376.4 million, up 22% year-over-year
• Subscription annual recurring revenue (ARR) $1.6 billion, up 22% year-over-year
• Remaining performance obligations (RPO) $2.4 billion, up 16% year-over-year
• GAAP gross margin 70.1%; non-GAAP gross margin 71.9%
• GAAP operating income $59.7 million; non-GAAP operating income $167.3 million
• GAAP operating margin 7.2%; non-GAAP operating margin 20.1%
• Q3 operating cash flow $97.0 million; free cash flow $35.2 million
• Total cash, cash equivalents, and marketable securities $1.6 billion
• Returned approximately $182 million in the 3rd quarter to stockholders through share repurchases of 3.6 million shares

“Our third quarter results exceeded our expectations on revenue and operating income, demonstrating the sustaining strength of our business models,” said Kevan Krysler, CFO, Pure Storage. “We remain focused on driving both near-term results and long-term value creation through disciplined investments and innovation that position Pure as the leader in transforming the data storage landscape.”

3rd quarter company highlights:

• Leading hyperscale opportunity: With its industry-first design win with a top-four hyperscaler, Pure Storage is extending its DirectFlash technology into massive scale environments today dominated by hard disks. The unmatched capabilities of the company‘s DirectFlash technology deliver new levels of innovation, performance, and scalability to an industry with demanding requirements, enabling hyperscalers to fully modernize their infrastructure, significantly improve operational efficiency, and dramatically free up scarce electrical power.
• Pure Storage also deepened its collaboration with Kioxia Corp., a global leader of NANO Flash technology, to develop cutting-edge technology and manufacturing capacity to address the growing need for high-performance, scalable storage infrastructure for tomorrow’s hyperscale environments.
• Advancing enterprise Al: Pure Storage expanded its ability to serve the world’s largest Al training environments with recent certification of FlashBlade//S500 with Nvidia OGX SuperPOD, which optimizes performance, power, and space efficiency. The company also entered into a strategic partnership with CoreWeave to better serve Al customers by making Pure Storage available as a standard option within the CoreWeave dedicated cloud environment. With its introduction of the new firm’s GenAI Pod, Pure Storage is providing a set of full-stack solutions which reduce the time, cost, and expertise required to deploy generative Al projects.
• Delivering Platform Innovation: With the Pure Storage platform, Pure is driving the biggest shift in enterprise storage since Flash. The company will be delivering v2.0 of Pure Fusion in its 4th quarter, which will enable customers to create their own enterprise data cloud, opening their data storage environment like the hyperscalers operate theirs. During the quarter Pure Storage unveiled solutions enabling VMware migrations to Microsoft Azure, delivering enterprise-scale flexibility. And the new FlashArray with AWS Outposts brings together Amazon Web Services and Pure’s enterprise-grade storage on AWS Outposts, giving customers the flexibility to run cloud services on an enterprise-grade storage platform within their own data centers.